Family of 4, two young children that are under 5. I was thinking of buying a holiday house so we can get out of Melbourne but close by. We spend probably $5000 each time we go on vacation overseas with flights and hotel. I thought it might be a better investment to buy a holiday house where we can go to the beach and spend time on vacation that way. Cheaper and possibly a good investment?? Thinking Rosebud area VIC What are your thoughts. Worth getting one? can you easily rent holiday houses for the times were not there? and thoughts would be helpful.
Cheers
ChrisBuy investments which make strong investments – not based on personal/emotional reasons.
I’m sure you’d agree that you can hire a holiday home locally for far less than any overseas vacations, which distorts the cost/benefit.
Corey Batt | Precision Funding
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Interesting dilemma – I will prelude the post with “you cannot go to the grave with it” – that is you need to enjoy yourself sometime and the enjoyment you and your family will get from the ‘beach’ will outweight the opportunity cost depending on your situation.
In 2004 – I bought a place, its my pride and joy – bought for $280k now worth $450k, but nothing can explain the enjoyment I have had. You can rent it out during holiday season but it is a emotional investment for me. I got into gardening and surf anytime I want, and the dogs have plenty of rabbits to chase (Phillip Island).
If you are looking for Rosebud – you will want to use the property when others do i.e school holidays chrissie and new year – that is where you can get the big bucks on a weekly rental. If it is for family enjoyment and you can afford it – then go for it. If it is for a investment where you want capital growth and yield then there are better investment options.
As for Mornington Peninsula, I do not think its a great place to invest – Rye – Rosebud and surround have been quite flat – so not sure about capital growth in the long term.
Cheers Ivan
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Thanks for your replys. Ok. I shouldn’t call it an investment, if it happens to get capital growth along with being able to enjoy a family holiday would be a bonus. Like Redwood said…its more for enjoyment for the family so it is for personal/emotional reason. Its seem like yours turn our to be enjoyable and a decent investment over those years. Thats is exactly what I’m kinda looking for. But also, I don’t want it to sit there rotting away when were not using it. So that is the dilemma with holiday houses that people own. Do you have any hot spots or idea where I can possibly have best of both worlds? Im not from here, originally from Canada. Australia has so many nice beaches with a few hours from the city. Just have to find a nice spot for a decent price. I also thought of just buying a trailer park type of thing, maybe that is better for me.
Cheers
ChrisHey Chris
My partner owns a holiday rentals company on the Mornington Peninsula. The best places to buy are in Rye down as these have the most demand, but all areas are sold out in Summer. Best to look for 4+ bedrooms if you can get one in your budget, this way it allows for 2 families to stay and you can ask a higher weekly amount.
Luxury homes can go for $10,000+ per week and we have some of these on the books. We have a lot of owners who live in their properties and move out to allow it to be rented when booking come in. Less demand for Rosebud overall. Best location, bang for buck is Rye 4 bed house.
Anything with a pool and a view and close to beach your onto a winner.
If it can pay for most of the mortgage and you get to stay there when its not rented why not.
For me a holiday house is a good investment and you can really save especially if love going on a vacation to the place where you want to purchase. You can also use it as a business and have it for rent for other travelers.
Airbnb makes holiday properties more attractive, friends used airbrn on their property when they sold as the purchaser wanted a long settlement. i think towards the end they wish they had of kept it for an investment.
All the premium suburbs such as Portsea, Flinders, Mt Eliza, Sorrento, Mt Martha, St Andrews Beach have had between $300,000 and $815,000 growth in the past 2 years or so. The area is booming! The peninsula was also named the 2nd top growth area across Australia. Have a read of this article to see what is currently going on.
Bayside
Coastal markets 2019
As for Mornington Peninsula, I do not think its a great place to invest – Rye – Rosebud and surround have been quite flat – so not sure about capital growth in the long term.
Cheers IvanThe Mornington has been a remarkable place to invest in the past few years. Just look at the amount of development occurring: https://www.urban.com.au/forum/mornington-peninsula-developments-mornington-mt-eliza-martha-cove-sorrento-rosebud
Bayside
Coastal markets 2019
My advice is Buy investments which make strong investments!!!
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